Copy
SQM Research Weekly Newsletter
View this email in your browser
SQM Research Residential Newsletter - 
Tuesday 30 June 2020
Facebook
Twitter
LinkedIn
Website
Property Explorer
Research Reports
Distressed Properties Report
Funds Research
Boom and Bust 2020 Report
Black Dragon's
Words for the Week

“The only valid political system is one that can handle an imbecile in power without suffering from it.” 

Nassim Nicholas Taleb

Real Estate Realities 

How coronavirus has snapped Australia’s fragile rental system

For years the balance between renters and landlords has become increasingly unstable, the relationship fractured by clashes during the past two federal elections, a state-by-state boost to rental rights, and a housing affordability crisis that has swelled the ranks of tenants.

The system’s ongoing survival was dependent on a lack of external shocks, but now the shock is here, laying bare the ways it fails tenants and their landlords.

Eminent housing expert Professor Hal Pawson said as much last week, but experts have been sharing that sentiment for years.

“It’s been easy for most people to be quite complacent about the housing system until three months ago,” the associate director at the City Futures Research Centre at UNSW told Domain. “This has exposed a number of weaknesses in the housing system. 

“There are plausible scenarios which are really damaging to the entire economy and certainly the Reserve Bank is worried about that too.”

The most fundamental flaw with Australia’s private rental market is the financialisation of housing through tax settings such as negative gearing and capital gains tax concessions, allowing those who can’t afford to be landlords to become landlords as a method of wealth creation.

 

AUCTION LISTINGS* for week ending 5 July 2020


CITY

Saturday

Rest of Week

 

STATE

Saturday

Rest of Week

Link

Sydney 473 96   All NSW 530 139 Auctions in NSW 
Melbourne 407 34   All VIC 435 46 Auctions in VIC 
Brisbane 54 20   All QLD 94 68 Auctions in QLD 
Perth 5 8   All WA 5 10 Auctions in WA 
Adelaide 25 19   All SA 26 20 Auctions in SA 
Canberra 26 14   All ACT 26 14 Auctions in ACT 
Darwin 1 3   All NT 1 3 Auctions in NT 
Hobart 1 0   All TAS 1 0 Auctions in TAS

*Note: To date, most state governments have announced the return to public open homes and on-site auctions this Saturday, some online auctions could be converted to on-site auctions or postponed to a future date.  The above counts of auctions represent most recent known auction dates for the coming week. 
 

AUCTION RESULTS for week ending 28 June 2020

Last week, Sydney recorded a final auction clearance rate of 49.6% with Saturday auctions breaking through the 50% barrier (50.3%).  While the mid-week results disappointed at 45.7%. Sydney auction  volumes rose again to 621 properties.
 
Melbourne auctions once again struggled.  A clearance rate for the week of 44.7% was recorded with the Saturday results fairing a little worse than the mid-week results (45.3% verses 36.6.%). Volumes rose to 622 properties.
 
Looking forward to this week, Sydney has 569 scheduled.   While Melbourne has 441 scheduled, which is a large dip compared to last week.


Full individual auction results can be found on our website: 


 

DISTRESSED PROPERTY OF THE WEEK

   1 / 2 Oliphant Avenue, Oaklands Park SA 5047

Built in 1963, this Strata titled, 3-bedroom home is ideal for first home buyers or those looking to downsize. It is located in a convenient location close to Oaklands Park train station, local shopping, schools, Flinders University, Westfield Marion shopping centre and Brighton and Glenelg beaches.  Plus it is only 25 minutes (approx. 13km) to Adelaide’s CBD.
 
The home is spacious and offers plenty of internal living space (approx. 114sqm) as well as outside undercover entertaining area.  The land size is approx. 318sqm.  There are 3 good sized bedrooms (all with built-in robes), spacious lounge, formal dining, updated kitchen with adjacent meals area, separate laundry and 2 car spaces.  There are no strata fees except for building insurance.
 
The home has had the same owners for the past 47 years and whilst it has been lovingly maintained and the kitchen updated, it does need further upgrading and could provide another family with a good investment.
 
The home has been on sale since March 2020 at a price of $390,000 to $420,000 but has now been reduced to $360,000-$380,000.  Currently
Asking prices for houses have increased by 2.2% over the month in this postcode, however units have declined by 10.9%.
 

Asking rents have declined by 3.6% over the month for houses and 8.4% for units.  The Vacancy Rates for postcode 5046 currently sits at a low 1.0%. The number of vacancies is 19. The current gross implied rental yield for the postcode is 4.2% for houses and 4.8% for units.
 
SQM’s
Postcode Snapshot report awards this postcode 4 stars (Superior) out of 5, primarily based on its house price, rental growth, vacancy rate and walkability scores.
 
This property will suit investors and first home buyers in a suburb that is showing good growth.

Keep monitoring this market’s growth with SQM Research’s free property data. Also consider the SQM Property Explorer product for more in-depth data and property price estimator.



 
Louis Christopher's 2020 Housing Boom & Bust Report has now been released and is available for $59.95!

The Housing Boom and Bust report is accurate, impartial and detailed. Best of all it is priced so that EVERYONE from real estate agents, financial planners to regular mums and dads can access it at just $59.95. 

Key features of the 2020 Boom & Bust report include:

  • Louis Christopher's personal take on the markets 
  • Capital city forecasts 
  • Main drivers of demand and supply at present and going forward 
  • All leading indicators such as stock on market, vacancy rates etc
  • All the possible scenarios that could play out next year 
  • Nearly every city and regional postcode covered re: property stats plus ratings outlook

If you are a real estate professional or a serious residential property investor, you will not want to miss this report!

If you are interested in where the market is heading on a national level, then this is the report for you from one of the most
accurate housing market forecaster in the country. 

Click here to purchase now!
 

SQM RATINGS NEWSLETTER

Did you know that SQM Research doesn’t only provide residential property data, we also provide research on all asset classes.  We have data and analytics on over 10,000 funds in Australia.  To find out more and to subscribe to our Fund Data tool click here.

If you would like to subscribe to our Ratings Newsletter, click here.  The newsletter provides regular updates on all funds including ratings changes and media releases, and valuable Insights into the point of view of our analysts on a variety of ratings research related topics.  And it’s completely free!

 

SQM RESEARCH HOUSING INDEXES
 
SQM Research Weekly Asking Prices Index
Week ending: 30 Jun 2020 Asking Price    Chg on
prev wk
  Rolling month
% chg
 12 month
% chg
Sydney  All Houses   1,378.3 -2.8  -0.9%  11.5% 
All Units 692.4 -2.4  -1.3%  -0.1% 
Melbourne  All Houses 1,027.0 -2.3  -1.5%  9.9% 
All Units 568.7 2.2  0.7%  5.4% 
Brisbane  All Houses 645.0 2.8  0.8%  4.5% 
All Units 378.4 0.9  1.0%  1.8% 
Perth  All Houses 672.9 2.0  1.3%  2.2% 
All Units 380.8 -1.5  0.9%  -1.3% 
Adelaide  All Houses 528.2 -0.0  0.0%  2.8% 
All Units 309.1 -0.5  0.6%  2.4% 
Canberra  All Houses 830.9 -0.0  0.9%  4.4% 
All Units 441.8 -0.1  0.6%  2.6% 
Darwin  All Houses 579.6 0.9  1.0%  -0.6% 
All Units 345.7 -0.5  0.3%  -2.8% 
Hobart  All Houses 572.0 2.4  0.5%  10.4% 
All Units 368.2 4.0  3.1%  19.8% 
National  All Houses 602.6 2.5  -0.6%  6.3% 
All Units 393.8 1.5  0.8%  5.0% 
Cap City Average  All Houses 989.1 -2.9  -0.8%  8.8% 
All Units 571.0 -1.1  -0.4%  1.3% 

Next update: 7 Jul 2020

SQM Research Weekly Rents Index
Week ending: 28 Jun 2020     Rent         Chg on
prev wk
  Rolling month
% chg
   12 month
% chg
Sydney  All Houses   639.9 -1.9  -0.6%  -6.7% 
All Units 472.9 -1.9  -1.5%  -5.9% 
Melbourne  All Houses 530.7 -0.7  -0.4%  -1.3% 
All Units 403.2 -0.2  -0.6%  -4.7% 
Brisbane  All Houses 467.1 1.9  1.5%  1.1% 
All Units 380.5 1.5  1.0%  1.7% 
Perth  All Houses 453.8 3.2  0.5%  2.7% 
All Units 350.9 1.1  1.2%  4.0% 
Adelaide  All Houses 411.6 1.4  0.6%  3.3% 
All Units 317.5 -0.5  0.3%  2.8% 
Canberra  All Houses 622.2 -1.2  -0.3%  -0.3% 
All Units 468.5 2.5  0.6%  1.8% 
Darwin  All Houses 484.4 5.6  -0.3%  -7.8% 
All Units 355.6 -0.6  0.2%  -3.4% 
Hobart  All Houses 436.6 2.4  1.6%  -0.6% 
All Units 374.0 -2.0  -3.7%  -4.1% 
National  All Houses 444.0 -1.0  0.7%  0.9% 
All Units 369.0 -6.0  0.0% 0.3% 
Cap City Average   All Houses 538.0 0.0 0.0% -2.2% 
All Units 423.0 -1.0  -0.9%  -4.1% 

Next update: 4 Jul 2020

Facebook
Twitter
LinkedIn
Website
Copyright © 2020 SQM Research, All rights reserved.

Our mailing address is: Level 16, 275 Alfred Street, North Sydney, NSW 2060, Australia

unsubscribe from this list